Budgeting is the process of setting financial goals and tracking progress towards those goals. It involves determining how much money to spend or save over a given period of time, and then analyzing actual spending or saving to ensure that the goals are being met. Budgeting can help people avoid financial emergencies, live paycheque to paycheque, get the best value for their money, and feel more comfortable with their financial situation. It can also help prevent fraud, unknown charges, and bank or merchant errors. To start budgeting, it is important to identify current goals and sketch out a financial picture, including assets, debts, and a typical month’s income and expenses. Once this information is gathered, it is helpful to create a budget plan that includes budget categories and limits, as well as a system for tracking progress. It is important to be flexible with the budget and to adjust it as necessary to meet changing goals or circumstances.
- Budgeting involves setting financial goals and tracking progress towards those goals
- It can help people avoid financial emergencies, live paycheque to paycheque, get the best value for their money, and feel more comfortable with their financial situation
- It can also help prevent fraud, unknown charges, and bank or merchant errors
- To start budgeting, it is important to identify current goals and sketch out a financial picture, including assets, debts, and a typical month’s income and expenses
- Once this information is gathered, it is helpful to create a budget plan that includes budget categories and limits, as well as a system for tracking progress
- It is important to be flexible with the budget and to adjust it as necessary to meet changing goals or circumstances.
